Global Electrical Steel Market Report (2025-2036):
Global Electrical Steel Market Size and Growth Forecast
Global Electrical Steel Market is projected to grow from USD 44428 million in 2025 to USD 86662 million by 2036, registering a CAGR of 6.24% during the forecast period. Often referred to as silicon steel, this advanced functional alloy is synthesized through a highly controlled metallurgical manufacturing process, mirroring the production of standard carbon steel but replacing typical high-carbon alloying additions with high-purity iron and elemental silicon as the primary raw materials. This precise manipulation of the material's crystalline microstructure yields distinct competitive advantages over traditional carbon steel alternatives, particularly through its exceptional magnetic permeability, high electrical resistivity, and drastically reduced hysteresis and eddy current core losses. Furthermore, its specialized grain orientation and enhanced thermal resistance provide unparalleled processing benefits when precision-stamped or sheared into thin laminations, minimizing energy dissipation as heat and ensuring superior mechanical integrity under intense electromagnetic stress. This expanding market landscape is primarily fueled by structural macroeconomic shifts toward sustainable electrification, with robust capital investments in renewable power generation and grid modernization serving as the fundamental economic drivers. Concurrently, rapid industrialization and infrastructural expansion across the Asia-Pacific region, alongside aggressive electric vehicle mandates and stringent energy-efficiency regulations in European and North American manufacturing hubs, are accelerating the deployment of high-efficiency electric motors and transformers, ultimately solidifying this specialized alloy as an indispensable cornerstone of the global energy transition.
Electrical Steel Applications in Packaging and Construction Industries
Electrical steel is predominantly utilized within the power generation and automotive sectors, functioning as the indispensable core material for transformers, electric motors, and generators. This specialized iron-silicon alloy is explicitly chosen for these high-stress applications due to its exceptional physical properties, most notably its high magnetic permeability, elevated electrical resistance, and critically low hysteresis and eddy current losses, which together drastically reduce energy dissipation during magnetic flux cycling. The surging demand for this advanced material is fundamentally driven by the global macroeconomic shift toward sustainable electrification, where technical superiority in energy conversion is paramount. In the mobility sector, the rapid consumer and industrial transition toward electric vehicles dictates the intensive use of high-grade, non-oriented electrical steel to maximize the power density, torque output, and operational efficiency of high-speed traction motors, while the concurrent modernization of regional power grids and the integration of renewable energy networks necessitate premium grain-oriented variants to minimize power transmission losses. These compelling technical requirements, coupled with an increasing consumer appetite for highly efficient household appliances and advanced industrial machinery, ensure that the overall market trajectory is characterized by robust expansion and deepening market penetration across all sectors heavily reliant on optimized power management and electrified infrastructure.
Global Electrical Steel Market Segmentation by Resin Type and End-Use Application
The market for electrical steel is primarily segmented by product type into grain-oriented and non-grain-oriented categories, and by application across transformers, electric motors, generators, and inductors within broader end-use sectors such as power generation, automotive manufacturing, and consumer appliances. Within these classifications, non-grain-oriented electrical steel currently holds the dominant share of the global market, an enduring leading position attributed to its widespread industrial adoption, cost-effective production, and essential role in ubiquitous rotating machinery, where its isotropic magnetic properties perfectly serve standard industrial motors and household appliances. Meanwhile, the automotive end-use category is rapidly emerging as the fastest-growing segment with immense economic potential, driven overwhelmingly by the soaring production of electric vehicle traction motors and advanced hybrid drivetrains. The foundational technical driver accelerating this segment's expansion is the material’s ability to deliver remarkably high magnetic permeability coupled with low core energy loss at elevated rotational frequencies, properties that are an absolute necessity for maximizing motor torque, optimizing power density, and significantly extending the driving range of modern electric vehicles.
Asia Pacific's Dominant Role in the Global Electrical Steel Market
The Asia-Pacific territory currently commands the leading position in the global electrical steel market, asserting an unparalleled dominance over the international geographical landscape. This entrenched leadership is heavily propelled by stringent regional regulatory frameworks and aggressive government policies aimed at carbon neutrality, alongside massive state-backed infrastructure initiatives that mandate superior energy efficiency standards across rapidly modernizing power grids. Complementing these robust regulatory drivers is an undeniable consumer and market sentiment characterized by widespread urbanization, advancing heavy industrialization, and an overwhelming societal shift toward sustainable, electrified transportation architectures. Furthermore, the region sustains its competitive edge through profound, systemic investments in advanced metallurgical research and development, focusing intently on maximizing automated production efficiency and engineering novel substrates with minimized core energy losses. Catalyzed by this relentless regional innovation ecosystem, the Asia-Pacific market is actively driving the diversification of electrical steel, expanding its critical utilization far beyond conventional power transmission infrastructure to establish it as an essential, high-performance material in next-generation high-speed electric vehicle drivetrains and advanced decentralized renewable energy harvesting systems.
Recent Developments and Strategic Initiatives (2025)
The global electrical steel market has witnessed substantial capacity expansions and strategic investments from late 2024 through early 2026, driven by escalating demand from the electric vehicle and renewable energy sectors. In October 2024, Baowu Steel Group launched a new 400,000 tons per year integrated electrical steel facility focused on advanced automotive-grade products. In January 2025, POSCO completed a 100,000 tons per year production line for non-grain-oriented electrical steel targeting the electric vehicle motor market. Expanding its geographic footprint, ArcelorMittal announced a 1.2 billion USD investment in February 2025 to build a new facility in Mobile County, Alabama, designed to produce up to 150,000 metric tons of non-grain-oriented electrical steel annually, alongside the scheduled second-half 2025 startup of its 170,000 tons per year line in Mardyck, France. Furthermore, in August 2025, JFE Steel Corporation and JSW Steel announced a 120 billion yen investment to expand their joint grain-oriented electrical steel manufacturing capacity in India to 350,000 tonnes per year across their Vijayanagar and Nashik sites. These targeted capital expenditures underscore a robust industry focus on increasing the production of high-performance magnetic materials to support global grid modernization and electrification infrastructure.
Key Players in the Global Electrical Steel Market
Major players in the Global Electrical Steel market are China Steel Corporation (CSC), POSCO, Shougang Co. Ltd, Wuhan Iron and Steel Co. Ltd (WISCO), Others (Nippon Steel, JFE Steel, etc)
Years considered for this report:
Historical Period: 2015-2024
Base Year: 2025
Estimated Year: 2026
Forecast Period: 2026-2036
This report will be delivered through an online digital platform with a one-year subscription, along with quarterly updates.
Objective of the Study:
• To assess the demand-supply scenario of the Electrical Steel, covering production, demand, and supply at the global level.
• To analyze and forecast the market size of Electrical Steel
• To classify and forecast the Global Electrical Steel market based on end-use industries and regional distribution.
• To examine competitive developments in the global Electrical Steel market, such as expansions, mergers & acquisitions, and other strategic initiatives.
Research Methodology: How Was the Electrical Steel Market Data Collected?
To extract data for the Global Electrical Steel market, primary research surveys were conducted with Electrical Steel manufacturers, suppliers, distributors, wholesalers, and traders. During the interviews, respondents were also asked about their competitors.Through this approach, ChemAnalyst was able to identify and include manufacturers that could not be captured through secondary research due to its limitations.Moreover, ChemAnalyst analyzed various market segments and projected a positive outlook for the Global Electrical Steel market over the coming years.
ChemAnalyst calculated the global demand for Electrical Steel by analyzing the volume consumed by end-user industries. The forecast was developed based on the growth rates of these end-use industries. These values were obtained from industry experts and company representatives and were externally validated by analyzing the historical sales data of respective manufacturers to determine the overall market size. Additionally, various secondary sources, such as company websites, association reports, and annual reports, were reviewed by ChemAnalyst.
Key Target Audience for This Report
• Electrical Steel manufacturers and other industry stakeholders
• Organizations, forums, and alliances related to Electrical Steel distribution
• Government bodies, including regulatory authorities and policymakers
• Market research organizations and consulting firms
The study provides insights into several critical ques tions relevant to industry stakeholders, including Electrical Steel manufacturers, customers, and policymakers. It also helps identify high-growth segments over the coming years, thereby supporting stakeholders in making informed investment decisions and facilitating strategic expansion.
Report Scope and Market Segmentation Framework
In this report, the Global Electrical Steel market has been segmented into the following categories. In addition, key industry trends have been detailed below:
Attribute
Details
Market size Value in 2025
USD 44428 Million
Market size Value in 2036
USD 86662 Million
Growth Rate
CAGR of 6.24% from 2026 to 2036
Base year
2025
Estimated year
2026
Historical Data
2015 - 2024
Forecast period
2027 - 2036
Quantitative units
Demand in thousand tonnes and CAGR from 2026 to 2036
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Type, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Manufacturing Process, Foreign Trade.
Segments covered
By End-Use: (Transformers, Generators, Motors, and Others) By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
Market Data & Insights
Table of Content
1. Industry Market Size
It is an essential metric for market analysis, as it provides insights into the overall size and growth potential of Electrical Steel market in terms of value and volume.
2. Capacity By Company
On our online platform, you can stay up to date with essential manufacturers and their current and future operation capacity on a practically real-time basis for Electrical Steel.
3. Capacity By Location
To better understand the regional supply of Electrical Steel by analyzing its manufacturers' location-based capacity.
4. Plant Operating Efficiency
To determine what percentage manufacturers are operating their plants or how much capacity is being currently used.
5. Production By Company [Quarterly Update]
Study the historical annual production of Electrical Steel by the leading players and forecast how it will grow in the coming years.
6. Demand by Type
Learn about the various types of Electrical Steel - Grain oriented electrical steel AND Non-grain oriented electrical steel, and their demands. It will allow you to choose which type to concentrate on when designing your strategy.
7. Demand by End- Use Application
Discover which end-use (Transformers, Generators, Motors, and Others) are creating a market and the forecast for the growth of the Electrical Steel market.
8. Demand by Region
Analyzing the change in demand of Electrical Steel in different regions, i.e., North America, Europe, Asia Pacific, Middle East and Africa, and South America, that can direct you in mapping the regional demand.
9. Demand by Sales Channel (Direct and Indirect)
Multiple channels are used to sell Electrical Steel. Our sales channel will help in analyzing whether distributors and dealers or direct sales make up most of the industry's sales.
10. Demand-Supply Gap
Determine the supply-demand gap to gain information about the trade surplus or deficiency of Electrical Steel.
11. Company Share
Figure out what proportion of the market share of Electrical Steel is currently held by leading players across the globe.
12. Manufacturing Process
Discover insights into the intricate manufacturing process of Electrical Steel.
13. Country-wise Export
Get details about quantity of Electrical Steel exported by major countries.
14. Country-wise Import
Get details about quantity of Electrical Steel imported by major countries.
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Member - Board of Directors
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Disruption Tracker
Disruption Tracker reflect the major shutdown on monthly basis which will help you in
tracking the inventory management and smooth functioning of business. Unforeseen shutdowns and disruptions
resulting in a loss of production capacity to impact the bottom line. The capacity tracker provides industries
with a global view of production and consumption capacity loss that reflects the corresponding conversion factors.
It also highlights the immediate impact on supply due to planned and unplanned outages as well as upcoming start-up
of new capacities. Additionally, it emphasizes how each shutdown—whether due to a maintenance turnaround or a case
of force majeure, affects the plant's operating rate for the given duration. Disruption tracker gives a clear insight
into the worldwide outages affecting the commodity of interest. With every shutdown, it also reflects the impact on
supply of the product in the market at a Global level.
The Global Electrical Steel Market was valued at USD 44428 million in 2025 and is projected to reach USD 86662 million by 2036, growing at a CAGR of 6.24% during the forecast period.
Major players include China Steel Corporation (CSC), POSCO, Shougang Co. Ltd, Wuhan Iron and Steel Co. Ltd (WISCO), Others (Nippon Steel, JFE Steel, etc).
The report covers market sizing and forecasting (2015–2036), segmentation, regional analysis, competitive landscape, and recent strategic developments. It also offers solutions including Custom Research for tailored business strategies.
Our Solutions
Custom Research
We at ChemAnalyst provide tailor-made solutions to our clients based on their requirements which help them in building and expanding their business by developing customized strategy such as sales strategy, GTM Strategy, product portfolio and new product development. Our dedicated team helps clients in getting the best solution for their requirements. We at ChemAnalyst look forward to serving our clients for long term association.
Techno Economic Feasibility Report (TEFR)
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Price Benchmarking
Pricing benchmark report provides real-time data perpetuating current market scenarios, in a world that is changing at a rapid pace, having real-time prices is an imperative to make impactful insights and thereby informed decisions. The Price Benchmarking report provides pricing data for an individual market, or group of markets, which can be converted into localized insights and comparable listings. Benchmarking Reports help clients to make informed decisions by construing the data on several filters: region, country, category, grade and subsequently increasing their brand presence. Clients majorly require pricing benchmarks when they opt for a competitive pricing strategy.
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